Osborne may water down bonus rules

GEORGE Osborne has set a collision course with business secretary Vince Cable after it emerged he may water down bank bonus rules.

The chancellor is on the verge of scrapping planned legislation forcing banks to disclose bonuses over £1m, according to a report in the Financial Times.

Bankers have lobbied Osborne, saying London’s position as a financial hub could be harmed as firms consider moving abroad to escape the rules.

But any watering down of the bonus rules will almost certainly lead to clashes with Cable, who has strongly campaigned for greater transparency.

Osborne is understood to favour a united action with the US and Europe.

Both Cable and Osborne were unavailable for comment last night.